Manufacturers know that innovation is the key enabler to designing and building new products that will ultimately succeed in the market. Innovation is also considered a major driver of the economy, especially when it leads to new product categories and increasing productivity. What, however, constitutes innovation when it comes to new product development? Can product development teams really promise innovation in their products or are most new products simply improved variations of existing products?
For many manufacturing companies, innovation typically begins in R&D. Ideas spun out of R&D need to obtain buy-in from management, who must determine and prioritize which ideas product development teams should pursue. Senior management must focus on setting the direction for innovative product development by identifying the criteria by which opportunities are assessed and by committing resources to pursue opportunities that fulfill those criteria.
Many companies begin the innovation process by asking questions such as: will this product meet an unmet customer need at a price point that makes sense? The answer to that question will identify what innovations might have market appeal. Another question to ask is does this product fit with our current technology, brand, manufacturing processes?
